DHL UAE steps up regional road freight business with USD3.5 million Jebel Ali hub

DHL UAE, the Emirates' leading air express supplier, has stepped up its express logistics and road freight capability with the opening of a USD3.5 million state-of-the-art express logistics centre in Jebel Ali Free Zone (JAFZ), Dubai.

The new facility will not only bolster DHL's traditional express delivery capabilities, but will also provide a solid platform to capitalise on the growing demand for tailored express logistics solutions and road freight.

'Over the past 12 months we have managed a 214% increase in weight handled through the Jebel Ali Free Zone. Customer demand continues to rocket and our new facility will provide us with the additional capacity necessary to offer even more customers full express logistics solutions,' said David Wild, General Manager, DHL UAE.

DHL's new facility will manage and process throughput arriving in Jebel Ali by road, air or sea for rapid distribution by road or air. A fast evolving part of this market is coming from road haulage, with more international players now focussing on the segment.

'Our Express Freight trucking business is witnessing phenomenal growth and already our scheduled service connects the UAE with key destinations across the Middle East and even as far as Turkey and into Northern Europe. We aim to rapidly expand our service reach and within two years, expect to more than double the number of scheduled routes we truck to. Our truck movements out of JAFZ have witnessed exponential growth and on average we are managing 20-30 movements daily,' added Wild.

Currently, DHL's Middle East trucking fleet consists of 45, 40-foot, state-of-the-art trailers – the biggest in use on the local road haulage scene – and the company says a feasibility study into fleet expansion is now underway.

'While road freight has been historically dominated by unorganised players, numerous international integrators are now increasingly focussing on this market. The intra-Middle East trade is a key driver for the road freight segment with Jebel Ali being the key origin point. Our new facility will help us lead the way regionally in the road freight business.'

DHL's Express Freight service provides unrivalled customs clearance expertise with day definite transit times. It also includes full track and trace technology, brand new trucks with air-ride suspension as well as a special club-class section for shipments, complete network coverage, GPS tracking and competitive prices tailor-made to customers needs.

'With organised less-than-truckload (LTL) expected to grow by over 30%, companies are now shifting to branded service providers, like DHL, which provide value add-ons such as track and trace, a wide network presence, guaranteed delivery times and customs clearance, ' explained Wild.

'We already have a robust road capability out of Jebel Ali, which is one of DHL's Middle East's four major regional trucking hubs alongside Abu Dhabi, Bahrain and Jordan. We also hope to improve our JAFZ offering with the planned introduction of a specialised pallet express service.'

Opening the new facility, Sultan Bin Sulayem, Executive Chairman, Dubai Ports, Customs & Free Zone Corporation (PCFC), said DHL UAE's investment is in line with Jebel Ali Free Zone Authority's (JAFZA) vision to attract major international industry players and reinforces its standing as a global logistics hub and one of the world's leading free zones.

'Jebel Ali Free Zone is currently home to over 4000 companies from over 100 countries which have found it to be the ideal hub from which to serve an expanded regional market of over 2 billion consumers,' he said.

'DHL has recognised JAFZ's potential not only in boosting its own business but in providing value-added and cost-efficient services to its region-wide customer base.'

Over 60% of all Middle East imports come through the Jebel Ali Free Zone, which continues to be an exciting, dynamic and evolving business environment with huge future potential.

'As our customer base expands and our portfolio of service capabilities broadens we need to invest even further. Over the past five years our UAE business has managed 25-30% year-on-year growth and 2005 is already looking like another bumper year. As Jebel Ali Free Zone is set to develop even further and with 'Logistics City' coming to the fore, DHL will lead the way in terms of presence, capacity and capability. This latest investment is just the beginning', said Wild.

DHL's new facility marks the beginning of the third stage of a region-wide strategic planning programme.

'This programme is essential in making sure we have the most effective structure necessary to provide a growing and more complex customer base with a full suite of express logistics solutions from a single source. Phase 1 involved a major market sizing study, stage 2 focussed on strategic planning and now we see with the launch of the new facility the first part of stage 3 – implementation', explained Wild.

'The UAE is one of the region's most important markets for us and this investment is in line with our 'mission possible' vision, positioning DHL as a fully integrated and seamless express solutions provider that will continue to maintain its customer- centric global standards and be consistently easy to do business with.'

About DHL

With annual revenues of over € 24 billion in 2004, DHL is the global market leader of the international express and logistics industry, specialising in providing innovative and customised solutions from a single source.

DHL offers expertise in air express, overland road transport and express solutions, combined with worldwide coverage and an in-depth understanding of local markets. DHL's international network links more than 220 countries and territories worldwide. Over 170,000 employees are dedicated to providing fast and reliable services that exceed customers' expectations.

DHL is 100% owned by Deutsche Post World Net

Deutsche Post World Net is the world's leading logistics group.

Its integrated Deutsche Post, DHL and Postbank companies offer tailored, customer-focused solutions for the management and transport of goods, information and payments through a global network combined with local expertise. Deutsche Post World Net is also the leading provider of Dialog Marketing services, with a unique portfolio of efficient outsourcing and system solutions for the mail business. Some 380,000 employees in more than 220 countries and territories worldwide generated revenue of €43 bn ($58 billion) in 2004.

For further information: Sarada Chellam, MCS/Action, P.O. Box 20970, Dubai, United Arab Emirates. Tel: +9714 390 2960; fax: +9714 390 8161.
Visit DHL online at: www.dhl.com